Q.5 a. Discuss the major differences between marginal costing and absorption techniques. b. A firm has...

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Q.5 a. Discuss the major differences between marginal costing and absorption techniques. b. A firm has two processes 1 and 2. Material for 12000 items was put into process1. There were no opening stocks and no process losses and there were transfers of 9000items to process 2. The unfinished items were complete as to material and 50% complete as to labour and overhead. The costs of process 1 were direct material $36000, direct labour $32000 and overheads S8000. Process 2 completed 7600 items and there were 600 scrapped which was considered normal. The balance was unfinished and deemed to be 25% complete in labour and overheads. The costs for process 2 were; labour $28500 and overheads $14000. Prepare process accounts for each account Q.5 a. Discuss the major differences between marginal costing and absorption techniques. b. A firm has two processes 1 and 2. Material for 12000 items was put into process1. There were no opening stocks and no process losses and there were transfers of 9000items to process 2. The unfinished items were complete as to material and 50% complete as to labour and overhead. The costs of process 1 were direct material $36000, direct labour $32000 and overheads S8000. Process 2 completed 7600 items and there were 600 scrapped which was considered normal. The balance was unfinished and deemed to be 25% complete in labour and overheads. The costs for process 2 were; labour $28500 and overheads $14000. Prepare process accounts for each account